Flash crash and extreme trading slams sterling

I'm City A.M.'s economics reporter, looking at the news, stories and data that move markets in the UK, Europe and around the globe. I also cover broader developments in the business and political worlds at home and abroad.

A fresh sell-off had the currency down more than three per cent for most of the day against both the dollar and the euro. A mini afternoon revival left the pound off 1.5 per cent at $1.2427 and €1.1133.

In the past 36 hours the pound has lost an almost unprecedented five cents against the dollar and briefly dipped below the crucial psychological mark of €1.10. Talk of parity against the single currency stalks the markets.

Sports Direct was the first big company to admit it had been stung by the flash crash, saying it took a £15m hit as hedging contracts kicked in when the pound was languishing below $1.20 for a few minutes overnight.